Sensex sharply tumbles 500 points on first monthly expiry after CAS, Nifty closes below 24,100. What lies ahead?
The Indian stock market experienced a sharp decline, with the Sensex dropping over 500 points following the implementation of a new closing auction session. Analysts suggest the volatility is driven by expiry-led trading and global geopolitical uncertainties.
Why it matters
The shift in how closing prices are calculated impacts market stability and investor strategy in one of the world's largest emerging economies.
The Indian stock market erased all gains to close in the red, with Sensex seeing a sharp downturn at the fag end of the session on its first monthly expiry following the introduction of the closing auction session (CAS).Sensex dropped 539 points or 0.7% to close at 76,934, while Nifty lost 117 points or 0.48% to end below 24,091 on Thursday.This comes after Nifty had ended in the green on Tuesday on its first expiry day since the launch of CAS, introduced by earlier this month, changing the way closing prices are calculated for stocks included in the futures and options (F&O) segment.HDFC Bank and NTPC shares dropped more than 2% each to lead losses on Sensex, while M&M, Bharti Airtel, HCL Tech, ITC, Infosys, IndiGo, Trent, Hindustan Unilever, Tata Steel and Reliance Industries (RIL) shares fell 1-2% to follow.
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